Update shared on09 Oct 2025
Fair value Increased 3.03%Analysts have raised their average price target on Evergy, increasing it by over $2. This change reflects improved growth expectations and recent positive regulatory developments.
Analyst Commentary
Recent analyst activity around Evergy highlights notable optimism, with several firms raising their price targets and emphasizing improved growth prospects, regulatory progress, and earnings trajectory. However, some areas of caution remain regarding execution and regulatory variability.
Bullish Takeaways- Bullish analysts have increased their price targets and reflect heightened confidence in Evergy's business outlook and regulatory landscape.
- Successful regulatory outcomes and continued improvement in Kansas' regulatory environment are seen as key drivers supporting further re-rating of Evergy's shares.
- Analysts point to strong customer growth and operational execution, noting outperformance relative to peers year to date and upside to consensus estimates.
- Expectations for a refreshed business plan and upward revisions to earnings growth forecasts, with some modeling as much as 7 percent compound annual EPS growth, are viewed as positive catalysts for future valuation.
- Bears remain cautious about Evergy's ability to sustain higher earnings growth rates in the long term, pending details from the upcoming business plan update.
- There is a watchful view regarding whether anticipated load growth will materialize in the near term, impacting future revenue projections.
- Uncertainty around achieving a group-average valuation multiple persists and depends on consistent improvements in earnings momentum and regulatory clarity.
What's in the News
- Evergy, TerraPower, and the Kansas Department of Commerce have signed a memorandum of understanding to explore the potential siting of TerraPower's Natrium reactor and energy storage system within Evergy's Kansas service territory. (Key Developments)
- The collaboration will focus on evaluating site-specific characteristics for an advanced nuclear power plant and assessing the technical design to support Evergy customers. (Key Developments)
- Key factors in site selection include community support, site characteristics, licensing prospects with the U.S. Nuclear Regulatory Commission, and access to infrastructure. (Key Developments)
Valuation Changes
- Fair Value has risen slightly from $75.60 to $77.89, reflecting updated growth expectations.
- Discount Rate remains unchanged at 6.78 percent.
- Revenue Growth has increased marginally from 5.01 percent to 5.02 percent.
- Net Profit Margin is up slightly, moving from 16.91 percent to 16.97 percent.
- Future P/E has increased from 18.39x to 18.87x. This suggests a modest upward adjustment in the valuation multiple.
Disclaimer
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